Microsoft 365 Business Premium vs. E3

In the modern day and age, technology makes all the difference for a business. However, so many companies have begun making the switch to the digital space that figuring out where to start can be a challenge. The majority of companies that still need to digitize have, as a result, begun turning towards the simplest option: Microsoft.

Microsoft offers perhaps the most utilized suite of services for businesses in all industries through their 365 platforms, which has allowed them to become the standard for businesses diving into the digital space. Businesses have a slew of options to choose from when deciding between 365 offerings. Two of the most commonly debated include the Business Premium and E3 packages which, despite seeming similar on the surface, are distinctly different.

Learn everything you need to know regarding the basics of Microsoft 365 and whether the Business Premium or E3 package is better for your business needs.

What is Microsoft 365?

Before diving deep into the comparison of Microsoft 365 Business Premium vs. E3, it’s important to break down what exactly Microsoft 365 is. In short, 365 is a product family of software geared towards productivity, collaboration, and cloud-based services. The goal of this robust suite of software applications is to help enhance a user’s innovation, efficiency, and general day-to-day tasks while ensuring world-class cloud services and strong security.

Microsoft 365 Business Premium Vs. E3 Breakdown

Those looking to purchase Microsoft 365 have three primary options: For Home, For Business, and For Enterprise. However, many businesses get hung up on the last two, with the Business Premium and E3 (Enterprise) options being the most debated. Let’s take a look at some of the key differences between these two packages:

Total Cost

Starting with perhaps the most important aspect of this comparison, the cost between the Business Premium and E3 365 packages are surprisingly comparable. The Business Premium package costs $22 per month per user, whereas the E3 costs just slightly more at $23 per month per user. These subscriptions are charged annually, however, meaning the cost is really $264 per user vs. $276 per user on an annual basis, respectively.

Services Offered

Considering the fact that the Business Premium package and the E3 package have comparable costs, it’s important to look at the services provided by each. Starting with the Business Premium plan, the included apps and services are as follows:

• Word
• Excel
• PowerPoint
• Outlook
• Microsoft Teams
• OneDrive
• SharePoint
• Exchange
• Access and Publisher (PC Only)
• Intune
• Azure Information Protection
• Microsoft Defender
• Azure Active Directory Premium P1

On top of the above applications and services, Business Premium holders gain access to 1 TB of OneDrive cloud storage per user and general security protection that ensures data is not lost. On the other hand, the Microsoft 365 E3 plan includes the following apps and services:

• Word
• Excel
• PowerPoint
• Outlook
• OneNote
• SharePoint
• OneDrive
• Microsoft Team

When strictly comparing it to the Business Premium plan, the E3 plan has significantly fewer services. However, users can access between 1-5+ TB on their OneDrive storage, allowing for greater data storage.

User Capacity

One of the biggest differences between the Microsoft 365 Business Premium vs. E3 plans lies in the user capacity for the two. The Business Premium plan has a seat cap of 300 users, whereas the E3 plan does not have a seat cap at all. This means that an organization can only sign up 300 users if they purchase a Business Premium Microsoft 365 plan.

Considering all of the factors above, a company may still be unsure which plan to go with. The Business Premium plan is best for small to medium-sized businesses that do not have a workforce exceeding 300 people. Alternatively, it could work well for larger organizations that only have a select department or two in need of the specific services. Otherwise, the E3 plan is the best option for larger businesses. Those concerned about the lack of services offered in the E3 plan can always level up to a modern advanced enterprise plan as well.

Adopt Technology That Will Improve Business Processes

Transitioning to the digital world will be a challenge for businesses for years to come, but technological advancements are only coming faster every year. Working with an IT expert like Warwick can reduce the pitfalls that occur when adapting a new system. Contact us to find out about implementing Microsoft 365 within your business!